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Alberto Abaterusso
Alberto Abaterusso
Articles (2195) 

3 Stocks Growing Their Earnings Fast

Their 5-year EPS growth rate have topped the S&P 500

March 16, 2020 | About:

If you want to choose stocks that carry a high potential to keep on moving their share prices higher, then you should consider those stocks that beat the S&P 500 index, which is the benchmark for the U.S. market, in terms of their five-year earnings per share (EPS) growth rate

The S&P 500 has grown its EPS by a yearly average of about 6.5% over the past five years, pushing its share price up by 42.63% to $2,711.02 at close on March 13, 2020.

As a result of strong past results, Wall Street sell-side analysts have released positive recommendation ratings for NextEra Energy Inc (NYSE:NEE), Avery Dennison Corp (NYSE:AVY) and WD-40 Co (NASDAQ:WDFC).

NextEra Energy

The Florida-based distributor of electricity in the U.S. and Canada has grown its trailing 12-month EPS without non-recurring items by 14.4% every year over the past five full fiscal years. On the tailwind of this, the share price ($221.56 as of March 13) has increased by 114.5%.

The stock has a market capitalization of $108.34 billion, a price-earnings ratio of 28.51 versus the industry median of 14.65 and a price-sales ratio of 5.6 versus the industry median of 1.2.

Wall Street recommends an overweight rating for this stock with an average price target of $264.07 per share.

GuruFocus assigned a low rating of 3 out of 10 for the company’s financial strength but a good rating of 7 out of 10 for its profitability.

Avery Dennison Corp

The Californian global producer and seller of pressure-sensitive materials has grown its trailing 12-month EPS without non-recurring items by 9.7% every year over the past five full fiscal years. As a result, the share price ($106.08 as of March 13) rose 103.1%.

The stock has a market capitalization of $8.84 billion, a price-earnings ratio of 29.63 versus the industry median of 14.61 and a price-sales ratio of 1.27 versus the industry median of 0.84.

Wall Street recommends a hold rating for this stock and has set a price target of $138.80 per share.

GuruFocus assigned the company a moderate financial strength rating of 5 out of 10 and a high profitability rating of 8 out of 10.

WD-40 Co

The San Diego, California-based developer and seller of maintenance, homecare and cleaning products in the U.S. and internationally has grown its trailing 12-month EPS without non-recurring items by nearly 9% every year over the past five full fiscal years. As a result, the share price ($181.77 as of March 13) has risen by 117.2%.

The stock has a market capitalization of $2.49 billion, a price-earnings ratio of 46.02 versus the industry median of 14.12 and a price-sales ratio of 5.96 versus the industry median of 0.82.

Wall Street recommends a hold rating for this stock and has set an average price target of $187 per share.

GuruFocus assigned a good rating of 7 out of 10 for the company’s financial strength and a very high rating of 9 out of 10 for its profitability.

Disclosure: I have no positions in any securities mentioned in this article.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about gold, silver and precious metals mining industries. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master's Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

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